Amundi, Europe’s asset manager, announces the launch of its tokenized share of the AMUNDI FUNDS CASH EUR money market fund. The first transaction reportedly took place on Nov 4, and the fund is now said to be distributed in a hybrid manner: it now remains accessible in the traditional manner and via the tokenized share AMUNDI FUNDS CASH EUR – J28 EUR DLT (C).
As explained in the update, the fund uses distributed ledger technology and the public Ethereum blockchain to ensure the “transparent record-keeping of fund units and traceability of transactions.”
This latest launch highlights a partnership with CACEIS, a key player in asset servicing in Europe and one of the European enablers of transfer agent activities.
CACEIS now offers the tech and infrastructure for “tokenizing fund units, digital portfolios for investors, and the digital order platform for subscriptions and redemptions.”
The use of blockchain tech brings various benefits for investors and fund unit distributors: instant order execution, “expanded distribution to new generations of investors, and 24/7 operability.”
Jean-Jacques Barbéris, Head of Institutional and Corporate Clients, and ESG at Amundi, said that the tokenization of assets is a “transformation set to accelerate in the coming years around the world.”
They added that this first initiative on “a money market fund demonstrates their expertise” and the adequacy of their methodology in “covering concrete use cases.”
Barbéris also mentioned that while “ensuring the highest security standards, Amundi will continue and expand its tokenization initiatives to benefit its clients in France and internationally.”
Jean-Pierre Michalowski, Chief Executive Officer at CACEIS, said that with the new hybrid Transfer Agent service, their clients “can quickly and easily benefit from a new distribution channel via blockchain to their investors.”
Michalowski added that this may be considered a decisive “step towards achieving their goal of offering 24/7 subscription and redemption services for investment fund units payable in stable coins (EMT) or central bank digital currency when it becomes available.”
